NETSOL Technologies, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Property And Equipment

Note 7 - Property And Equipment

6 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 7 - PROPERTY AND EQUIPMENT

Property and equipment, net, consisted of the following:

	As of December 31, 2013			As of June 30, 2013

Office furniture and equipment	$	2,335,870		$	2,508,975
Computer equipment		21,147,616			19,987,480
Assets under capital leases		1,429,499			1,126,860
Building		2,312,134			2,391,550
Land		2,380,083			2,460,144
Capital work in progress		6,339,326			5,104,283
Autos		738,139			689,440
Improvements		439,211			513,044
Subtotal		37,121,878			34,781,776
Accumulated depreciation		(13,544,780	)		(13,803,407	)
Property and equipment, net	$	23,577,098		$	20,978,369

For the three and six months ended December 31, 2013, depreciation expense totaled $1,116,347 and $2,113,907, respectively. Of these amounts, $716,890 and $1,330,000, respectively, are reflected in cost of revenues. For the three and six months ended December 31, 2012, depreciation expense totaled $775,548 and $1,529,656, respectively. Of these amounts, $485,167 and $939,912, respectively, are reflected in cost of revenues.

The Company’s capital work in progress consists of ongoing enhancements to its facilities and infrastructure necessary to meet the Company’s expected long term growth needs. The Company recorded capitalized interest of $1,017,635 and $904,700 as of December 31, 2013 and June 30, 2013, respectively.

Following is a summary of fixed assets held under capital leases as of December 31, 2013 and June 30, 2013:

	As of December 31, 2013			As of June 30, 2013
Computer Equipment and Software	$	560,890		$	454,002
Furniture and Fixtures		180,087			951
Vehicles		688,522			671,907
Total		1,429,499			1,126,860
Less: Accumulated Depreciation		(391,885	)		(350,048	)
Net	$	1,037,614		$	776,812